NEW YORK — Free-market molybdenum prices have dropped as demand from the steel sector wanes, according to producers and traders.

Ferromolybdenum moved down to a range of $12.70 to $12.90 per pound Feb. 7 from $12.80 to $13 previously.

"We offered $13 per pound for ferromolybdenum and were declined. We knew that was at the higher end of the range," one producer source said. "It’s a lack of demand, mainly. Steel production isn’t sufficiently high, and the grades being made aren’t using moly."

The price drop has prompted a second producer to wait out the market until prices improve, having also been refused at a quote of $13 per pound for ferromolybdenum. "The market has been softening, prices are lower," a source at the producer said. "And we don’t participate when the market is softening."

Ferromolybdenum prices trended down through much of 2012, dropping from a high of $16.40 per pound in April to a low of $12.35 in December.

Molybdic oxide prices dropped to a range of $11.25 to $11.50 per pound Feb. 7 from $11.50 to $11.70 previously.